Economists are backing a proposal for Malaysia’s RON95 petrol subsidy targeting system, suggesting it could be implemented effectively through a MyKad-based monthly quota system. According to FMT, economist Ahmed Razman Abdul Latiff from Putra Business School noted that this approach, compared to direct cash subsidies, would limit abuse and prevent inflated prices for other goods. He explained that by setting a monthly MyKad quota, users would receive subsidised RON95 fuel up to a certain amount, after which they’d pay the full market rate, thus minimising the misuse of subsidies.
The MyKad system, he said, is reliable due to its security features and can authenticate the user’s identity, with options for biometric verification at petrol stations, reducing the need for a new subsidy system. Ahmed added that cash-based subsidies risk raising food prices, as traders may take advantage of increased consumer spending power.
